Year in and year out, the Land of the Rising Sun welcomes hundreds of thousands of tourists and travel enthusiast from different parts of the globe. These travellers come to visit Japan in order to go sightseeing, experience the country’s unique culture and try out the wide selection of iconic Japanese dishes.
In view of the influx of international tourists in Japan, one of the most prominent taxi operators Nihon Kotsu Co. and domestic information technology company, DeNA Co. has seeks to integrate their businesses to form a taxi hailing online application business. Wit this collaboration, over one hundred thousand public utility vehicles or taxis will be made available for the hailing service.
The said plan to integrate aims to increase cost competitiveness, provide convenience to taxi customers as well as develop the taxi hailing application in the market. In the process, DeNA Co.’s onine taxi hailing online business will be taken over by Japan Taxi Ko which is a subsidiary of Nihon Kotsu.
After the intended merger, DeNa will be able to obtain new shares to be issued by Japan Taxi. Consequently, the information technology company will have around thirty eight percent equity stake in the transportation company. With this, the ownership will be able to match Nihon Kotsu thus the two companies will be the majority shareholders of Japan Taxi whose name will be amended after the business merger.
Both Nihon Kotsu and DeNa aspires to increase the customers of the application by making investments that will improve the taxi hailing system. It is also one of the methods by which they will strengthen one of their major income sources which is mobile advertising or marketing business.
Upon the major integration, Ichiro Kawanabe who is the current president of Nihon Kotsu will also be the chairman of the merged company. Meanwhile, the Managing Executive Officer of DeNa Hiroshi Nakajima will be the President.
Reference: Nihon Kotsu and DeNA to integrate taxi-hailing services
